Filing Bankruptcy / Fraud / News

Two San Diego Women Sentenced in Separate Bankruptcy Fraud Schemes

Rockxanna Hawks, 43, of Coronado, California and Ofelia DeAusen, 54, of San Diego, California both plead guilty to bankruptcy fraud and concealment of assets earlier this month.  Hawks lied about owning a home in France while DeAusen kept hidden jewelry worth more than $60,000 .  Both women were charged with concealment of assets in bankruptcy with each facing the maximum penalty of 5 years in prison, 3 years supervised release, $100 special assessment and a $250,000 fine.

Hawks filed Chapter 7 bankruptcy in March 2008.  She gave a false impression of having no real property.  When asked to list property she listed “none.”  In fact, she and her then husband bought a home in France valued at $182,000.  In September 2012 she pleaded guilty and admitted she concealed the house on purpose when she filed.

DeAusen filed a joint Chapter 7 bankruptcy petition in April 2008 with her husband.  While she reported she had assets including jewelry and a fur, she falsely claimed they were only worth $1,000.  In turn, she had jewelry and watches worth more than $60,000.  The jewelry included a star-studded collection of men and women’s jewelry including diamond rings, Movado watches and diamond rings made with baguettes.  DeAusen pleaded guilty in August 2012 to concealing assets when she filed her petition.

Bankruptcy protection is meant to help consumers dealing with financial setbacks instead of helping debtors hide fancy assets such as vacation homes and jewelry.  Just because concealed assets are not valued in the millions of dollars don’t mean they will be overlooked.

Reference: http://www.fbi.gov/sandiego/press-releases/2012/two-san-diego-women-sentenced-for-separate-bankruptcy-fraud-schemes